Core Viewpoint - Qualcomm reported quarterly earnings of $2.85 per share, exceeding the Zacks Consensus Estimate of $2.83 per share, and showing an increase from $2.44 per share a year ago, indicating a positive earnings surprise of 0.71% [1][2] Financial Performance - The company achieved revenues of $10.84 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.55%, and up from $9.39 billion year-over-year [2] - Qualcomm has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Stock Performance - Qualcomm shares have declined approximately 4.4% since the beginning of the year, while the S&P 500 has seen a decline of 5.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.65 on revenues of $10.29 billion, and for the current fiscal year, it is $11.85 on revenues of $43.39 billion [7] - The outlook for the Electronics - Semiconductors industry is positive, ranking in the top 23% of over 250 Zacks industries, suggesting potential for outperformance [8]

Financial Data and Key Metrics Changes - The company reported non-GAAP revenues of $10.8 billion and non-GAAP earnings per share of $2.85, both exceeding the midpoint of guidance [6][22] - QCT revenues reached $9.5 billion with an EBT margin of 30%, driven by strength in handsets, IoT, and automotive [22][23] - QTL revenues were $1.3 billion with a flat EBITDA margin of 70% year-over-year, slightly below guidance due to lower handset units in emerging regions [22] Business Line Data and Key Metrics Changes - Handset revenues grew 12% year-over-year to $6.9 billion, benefiting from increased premium tier Android shipments [23] - IoT revenues increased 27% year-over-year to $1.6 billion, driven by demand for products with connectivity, processing, and AI technologies [23] - Automotive revenues reached $959 million, reflecting a 59% year-over-year growth due to increased content in new vehicle launches [23] Market Data and Key Metrics Changes - The company expects QCT handset revenues to increase approximately 10% year-over-year, driven by growth in Android [25] - In the PC market, Snapdragon-based PCs accounted for approximately 9% of Windows laptops above the $600 price tier in retail [14][68] - The company anticipates achieving $4 billion in revenues from the PC segment by fiscal 2029 [14] Company Strategy and Development Direction - The company aims to grow non-handset revenues to $22 billion by fiscal 2029, focusing on AI and connectivity [8] - Strategic acquisitions, such as Edge Impulse and Focus AI, are intended to enhance capabilities in industrial IoT and AI [20][44] - The company remains committed to its long-term financial framework despite macroeconomic uncertainties [26] Management's Comments on Operating Environment and Future Outlook - Management noted that there is uncertainty around the global trade landscape and its impact on demand, but they do not see any material direct impact from tariffs at this point [24][32] - The company expressed confidence in its technology roadmap and relevance across various industries [94] - Management highlighted strong demand in automotive and IoT, with expectations for continued growth in these segments [19][23] Other Important Information - The company returned $2.7 billion to shareholders, including $938 million in dividends and $1.7 billion in stock repurchases [23] - The company is increasing its capital return target to 100% of free cash flow in fiscal 2025, reflecting strong cash flow generation [26][90] Q&A Session Summary Question: Can you discuss the assumptions in your guidance for the handset market? - Management indicated that their guidance reflects the current assessment of the financial impact from tariffs, with no material direct impact observed [32][34] Question: Any updates on Huawei royalty revenue negotiations? - Management stated there are no updates on negotiations with Huawei at this time [36] Question: What drove the upside in the IoT segment? - Management noted tremendous growth in IoT, particularly in industrial applications, driven by a transition from microcontrollers to microprocessors and AI [40][41] Question: How do recent acquisitions enhance capabilities in current end markets? - Management emphasized that acquisitions like Edge Impulse and Focus AI are aimed at building a software platform to scale technology across various verticals [44] Question: What are the growth drivers in the automotive segment? - Management highlighted the digitization of cars and increased content in digital cockpit and ADAS as key growth drivers [60][61] Question: How is the competitive landscape in smartphones? - Management stated that the competitive landscape remains stable, with a strong relationship with Samsung and competition primarily with MediaTek in the premium tier [76] Question: What is the outlook for AI in mobile versus PC? - Management expressed optimism about AI driving more NPU content in mobile, while noting that PC AI is still in the early stages of development [80][84] Question: What is the reasoning behind increasing the return of free cash flow to shareholders? - Management indicated strong cash flow and a growing cash balance as reasons for increasing buybacks while maintaining strategic flexibility for M&A [90][91]

Financial Data and Key Metrics Changes - The company reported non-GAAP revenues of $10.8 billion and non-GAAP earnings per share of $2.85, both exceeding the midpoint of guidance [4][20] - QCT delivered revenues of $9.5 billion with an EBT margin of 30%, while QTL revenues were $1.3 billion with a flat EBITDA margin of 70% year-over-year [20][21] - The company returned $2.7 billion to shareholders, including $938 million in dividends and $1.7 billion in stock repurchases [21] Business Line Data and Key Metrics Changes - QCT handset revenues grew 12% year-over-year to $6.9 billion, driven by increased premium tier Android shipments [21] - QCT IoT revenues increased 27% year-over-year to $1.6 billion, with industrial IoT being the largest growth contributor [21][40] - Automotive revenues reached $959 million, reflecting a 59% year-over-year growth due to increased content in new vehicle launches [21][15] Market Data and Key Metrics Changes - The company expects QCT revenues to grow approximately 12% year-over-year, led by strength in handsets, IoT, and automotive [23] - In the PC market, Snapdragon-based PCs accounted for approximately 9% of Windows laptops above the $600 price tier in retail [12][68] - The company anticipates achieving $4 billion in revenues from the PC segment by fiscal 2029 [12] Company Strategy and Development Direction - The company aims to grow non-handset revenues to $22 billion by fiscal 2029, focusing on AI and connectivity [5][24] - Strategic acquisitions, such as Edge Impulse and Focus AI, are intended to enhance capabilities in industrial IoT and AI [18][43] - The company remains committed to its long-term financial framework despite macroeconomic uncertainties [24][25] Management's Comments on Operating Environment and Future Outlook - Management noted that there is no material direct impact from tariffs at this point, but they are closely monitoring the situation [30][56] - The company expressed confidence in its technology roadmap and relevance across various industries [91] - Management highlighted the ongoing transition from microcontrollers to microprocessors and AI in the IoT space as a significant growth opportunity [40] Other Important Information - The company launched the Dragonwing fixed wireless access Gen four Elite platform, which is the world's first 5G advanced FWA platform [19] - The x85 modem platform was positively received by major operators in the U.S., China, and Japan, enhancing connectivity for 5G smartphones [10][11] Q&A Session Summary Question: Can you discuss the assumptions in your guidance for the handset market? - Management indicated that their guidance reflects the current assessment of the financial impact from tariffs, with no material direct impact observed [30][32] Question: Any updates on Huawei royalty revenue negotiations? - There are no updates on negotiations, which are ongoing [34] Question: What drove the upside in the IoT segment? - The IoT segment saw 27% year-over-year growth, primarily driven by industrial applications and the transition to AI [38][40] Question: How do recent acquisitions enhance capabilities in current markets? - Acquisitions are aimed at augmenting the IoT space, particularly in industrial applications, to leverage advanced computing and AI [42][43] Question: What is the outlook for the automotive segment? - The automotive segment is expected to double by fiscal 2029, driven by increased digital cockpit and ADAS content [58][60] Question: How is the competitive landscape in smartphones? - The competitive landscape remains stable, with Qualcomm maintaining a strong position against competitors like MediaTek [74] Question: What are the expectations for chipset gross margins? - Chipset gross margins were affected by a mix across tiers, but management remains optimistic about future trends [52][53] Question: What is the rationale behind increasing the capital return target? - The increase reflects strong cash flow generation and a strategic opportunity to leverage cash balances for shareholder returns [89]

Financial Highlights - Non-GAAP revenues increased by 18% year-over-year to $11.7 billion, exceeding the high end of the guidance range[10] - Non-GAAP EPS increased by 24% year-over-year to $3.41, also above the high end of the guidance range[10] - QCT revenues reached a record $10.1 billion, including record revenues for Handsets and Automotive[10] - Qualcomm returned $2.7 billion to stockholders, including $1.8 billion in share repurchases and $0.9 billion in dividends[12, 13] Segment Performance (QCT) - QCT revenues were $10.084 billion, a 20% increase year-over-year[14] - Handset revenues within QCT were $7.574 billion, up 13% year-over-year[14] - Automotive revenues within QCT were $961 million, a 61% increase year-over-year, marking the 6th consecutive quarter of record automotive revenues[14, 13] - IoT revenues within QCT were $1.549 billion, a 36% increase year-over-year[14] - QCT's EBT was $3.246 billion, with an EBT margin of 32%[14] Segment Performance (QTL) - QTL revenues were $1.535 billion, a 5% increase year-over-year[14] - QTL's EBT was $1.158 billion, with an EBT margin of 75%[14] Key Announcements & Partnerships - The Snapdragon® 8 Elite Mobile Platform for Galaxy is powering the Samsung Galaxy S25 series globally[10, 22] - Qualcomm and Amazon announced a technology collaboration for delivering AI-powered experiences in the car[27, 29] - The Snapdragon X Platform is designed to address PCs in the $600 price range[10, 25]

Financial Performance - Revenues for Q2 fiscal 2025 were $11.0 billion, a 17% increase year-over-year, with net income of $2.8 billion, up 21% from the previous year[69] - The first six months of fiscal 2025 saw total revenues of $22.6 billion, an increase of $3.3 billion compared to the same period last year[74] - Total revenues for Q2 2025 reached $9.469 billion, up 18% from $8.026 billion in Q2 2024, driven by higher revenues across handsets, automotive, and IoT segments[88] Segment Performance - QCT segment revenues increased by 18% in Q2 fiscal 2025, driven by higher sales in handsets, automotive, and IoT[72] - QTL segment revenues remained approximately flat in Q2 fiscal 2025 compared to the same quarter last year[72] - Handset revenues increased by $749 million in Q2 2025, totaling $6.929 billion, compared to $6.180 billion in Q2 2024, marking a 12% growth[88] - Automotive revenues rose by $356 million to $959 million in Q2 2025, up from $603 million in Q2 2024, representing a 59% increase[88] - IoT revenues grew by $338 million to $1.581 billion in Q2 2025, compared to $1.243 billion in Q2 2024, an increase of 27%[88] - QCT segment revenues for the first six months of fiscal 2025 were $19.2 billion, up from $16.2 billion in the same period of 2024, reflecting a 18% increase[91] - QTL licensing revenues for Q2 2025 were approximately flat at $1.319 billion, with EBT at $929 million, a slight decrease from $933 million in Q2 2024[95] Expenses and Margins - Gross margin for Q2 fiscal 2025 was 55%, down from 56% in the same quarter last year, primarily due to a decrease in QCT gross margin[76] - Research and development expenses for Q2 fiscal 2025 were $2.2 billion, representing 20% of revenues, down from 24% in Q2 fiscal 2024[79] - Selling, general and administrative expenses were approximately flat at $706 million in Q2 fiscal 2025, accounting for 6% of revenues[81] Cash Flow and Financing - For the first six months of fiscal 2025, net cash provided by operating activities was $7.141 billion, an increase of $638 million compared to the previous year[110] - Net cash used by financing activities increased to $5.789 billion, up $2.168 billion from the prior year, primarily due to share repurchases and cash dividends[110] - The company repurchased 22 million shares for $3.5 billion and paid $1.9 billion in cash dividends during the first half of fiscal 2025[110] - Income taxes paid exceeded the provision by $530 million, negatively impacting net cash provided by operating activities[111] - A decrease in payroll and other benefit-related liabilities negatively impacted operating cash flows, partially offset by a decrease in other assets[112] Tax and Interest - The expected income tax provision at the federal statutory rate for Q2 2025 was $652 million, compared to $525 million in Q2 2024, reflecting an increase of 24%[86] - The company estimates an annual effective income tax rate of 11% for fiscal 2025, lower than the U.S. federal statutory rate[86] - Interest expense for Q2 fiscal 2025 was $163 million, a decrease of $9 million from the previous year[83] Market and Competition - The company experienced a $143 million increase in licensing revenues due to a recent settlement of a licensing dispute[78] - The company expects transitions to new generations of leading process technology nodes to continue driving product cost increases from key semiconductor wafer suppliers[109] - Intense competition is anticipated, particularly from vertical integration by customers like Apple, which has begun using its own modem, negatively impacting QCT revenues[109] Dividends and Cash Position - The quarterly dividend per share was increased from $0.85 to $0.89, effective for dividends payable after March 27, 2025[114] - Cash and cash equivalents as of March 30, 2025, were $7.203 billion, down from $7.849 billion as of September 29, 2024, a decrease of 8%[108] - Marketable securities increased to $6.643 billion as of March 30, 2025, up from $5.451 billion as of September 29, 2024, an increase of 22%[108] - The company believes its cash, cash equivalents, and marketable securities will satisfy working and other capital requirements for at least the next 12 months[116] Financial Risks - Financial market risks related to interest rates, foreign currency exchange rates, and equity prices remain unchanged, despite increased volatility in capital markets[118]

FOR IMMEDIATE RELEASE Exhibit 99.1 Qualcomm Contact: Mauricio Lopez-Hodoyan Vice President, Investor Relations Phone: 1-858-658-4813 | e-mail: ir@qualcomm.com Qualcomm Announces Second Quarter Fiscal 2025 Results GAAP Revenues: $11.0 billion GAAP EPS: $2.52, Non-GAAP EPS: $2.85 —QCT EBT: 25% Year-Over-Year Growth— —QCT Diversification: Combined Automotive and IoT Revenues Grew 38% Year-Over-Year— SAN DIEGO - April 30, 2025 - Qualcomm Incorporated (NASDAQ: QCOM) today announced results for its fiscal second ...

Group 1 - The account is managed by Noah's Arc Capital Management, focusing on 20th century stocks undergoing transformation in the 21st century [1] - The research aims to identify innovations in business models that could lead to significant stock changes [1] Group 2 - The managing partner of Noah's Arc Capital Management is Noah Cox, whose views may not reflect the firm's overall stance [3] - The article is intended solely for informational purposes and does not constitute investment advice [3]

Core Viewpoint - Investors in the Electronics - Semiconductors sector should consider Qualcomm (QCOM) and Applied Materials (AMAT) for potential value opportunities [1] Valuation Metrics - Qualcomm has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Applied Materials has a Zacks Rank of 3 (Hold) [3] - QCOM's forward P/E ratio is 12.54, compared to AMAT's forward P/E of 16.18, suggesting QCOM may be undervalued [5] - The PEG ratio for QCOM is 1.36, while AMAT's PEG ratio is 1.60, indicating QCOM has a more favorable growth outlook relative to its valuation [5] - QCOM's P/B ratio is 6.14, while AMAT's P/B ratio is 6.61, further supporting QCOM's relative valuation attractiveness [6] - Based on these metrics, QCOM holds a Value grade of B, while AMAT has a Value grade of C [6] Conclusion - QCOM has demonstrated stronger estimate revision activity and more attractive valuation metrics than AMAT, making it a superior option for value investors at this time [7]

Core Viewpoint - Qualcomm is expected to report strong earnings for the second quarter of fiscal 2025, with improved revenue and earnings estimates over the past 60 days, driven by advancements in 5G technology and AI integration [1][5][13]. Earnings Estimates - The Zacks Consensus Estimate for Qualcomm's revenues is $10.64 billion and earnings per share is $2.82 for the upcoming quarter [1]. - Earnings estimates for fiscal 2025 have increased from $11.64 to $11.85 per share, and for fiscal 2026 from $12.43 to $12.61 [1][2]. Earnings Surprise History - Qualcomm has a strong earnings surprise history, averaging a 7.8% surprise over the last four quarters, with a notable 16.4% surprise in the last reported quarter [3][14]. Earnings Whispers - Qualcomm has a positive Earnings ESP of +0.86% and a Zacks Rank of 2 (Buy), indicating a high likelihood of an earnings beat for the upcoming quarter [4]. Factors Influencing Results - The rollout of 5G technology and investments in mobile licensing are expected to drive long-term revenue growth [5][11]. - Qualcomm's Snapdragon portfolio is positioned to capitalize on growth opportunities in the mobile space, particularly with the launch of new AI-focused products [6][12]. Product Launches - The Snapdragon X chip for mid-range AI desktops and laptops was launched, featuring advanced processing capabilities [6]. - Samsung has deployed the Snapdragon 8 Elite Mobile Platform in its latest smartphone models, enhancing connectivity and performance [7]. Price Performance - Over the past year, Qualcomm's stock has decreased by 12.2%, underperforming the industry average growth of 9.1% [8]. Valuation Metrics - Qualcomm's shares are trading at a forward P/E ratio of 12.09, which is lower than the industry average of 24.06 and its historical mean of 17.35, indicating a relatively cheaper valuation [9][13]. Investment Considerations - Qualcomm is focusing on maintaining its leadership in 5G and mobile connectivity through innovative product launches and technological advancements [11][12]. - The company is well-positioned to benefit from the growing demand for 5G and AI technologies, which are expected to drive future revenue growth [5][13].

In its upcoming report, Qualcomm (QCOM) is predicted by Wall Street analysts to post quarterly earnings of $2.82 per share, reflecting an increase of 15.6% compared to the same period last year. Revenues are forecasted to be $10.64 billion, representing a year-over-year increase of 13.3%.The current level reflects an upward revision of 1.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial pr ...